Discounted Cash Flow (DCF) Analysis Unlevered

Scholastic Corporation (SCHL)

$43.87

+0.60 (+1.39%)
All numbers are in Millions, Currency in USD
Stock DCF: 7.71 | 43.87 | overvalue

Operating Data

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 1,628.401,653.901,487.101,300.301,642.901,664.531,686.451,708.661,731.161,753.95
Revenue (%)
EBITDA 66.50109.903.4078.20157.4088.3989.5690.7491.9393.14
EBITDA (%)
EBIT 0.5028.20-86.80-12.1092.501.992.022.052.072.10
EBIT (%)
Depreciation 6681.7090.2090.3064.9086.4087.5488.6989.8691.04
Depreciation (%)

Balance Sheet Data

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Total Cash 391.90334.10393.80366.50316.60393.51398.69403.94409.26414.65
Total Cash (%)
Account Receivables 204.90250.10329.80344.90326.20320.46324.68328.96333.29337.68
Account Receivables (%)
Inventories 294.90323.70270.60269.70281.40312.09316.20320.37324.58328.86
Inventories (%)
Accounts Payable 198.90195.30153.60138162.30182.58184.98187.42189.89192.39
Accounts Payable (%)
Capital Expenditure -121.50-95-66-47.20-42-79.33-80.38-81.43-82.51-83.59
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 43.87
Beta 1.105
Diluted Shares Outstanding 35.56
Cost of Debt
Tax Rate 9.81
After-tax Cost of Debt 2.70%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.904
Total Debt 97.10
Total Equity 1,560.19
Total Capital 1,657.29
Debt Weighting 5.86
Equity Weighting 94.14
Wacc

Build Up Free Cash

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 1,628.401,653.901,487.101,300.301,642.901,664.531,686.451,708.661,731.161,753.95
EBITDA 66.50109.903.4078.20157.4088.3989.5690.7491.9393.14
EBIT 0.5028.20-86.80-12.1092.501.992.022.052.072.10
Tax Rate -233.33%40.00%51.17%39.56%9.81%-18.56%-18.56%-18.56%-18.56%-18.56%
EBIAT 1.6716.92-42.38-7.3183.432.362.392.432.462.49
Depreciation 6681.7090.2090.3064.9086.4087.5488.6989.8691.04
Accounts Receivable --45.20-79.70-15.1018.705.74-4.22-4.28-4.33-4.39
Inventories --28.8053.100.90-11.70-30.69-4.11-4.16-4.22-4.27
Accounts Payable --3.60-41.70-15.6024.3020.282.402.442.472.50
Capital Expenditure -121.50-95-66-47.20-42-79.33-80.38-81.43-82.51-83.59
UFCF -53.83-73.98-86.485.99137.634.753.633.683.733.78
WACC
PV UFCF 4.383.082.882.692.51
SUM PV UFCF 15.53

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.54
Free cash flow (t + 1) 3.85
Terminal Value 58.89
Present Value of Terminal Value 39.09

Intrinsic Value

Enterprise Value 54.62
Net Debt -219.50
Equity Value 274.12
Shares Outstanding 35.56
Equity Value Per Share 7.71